When the Path is Unclear, Stop & Study the Situation
Our Featured Condor was Closed Out Today with a $800.00+ Profit. It had reached maturity with expiration next week. The Market behavior became erratic and volatile and we took our profit. One rule to follow in trading options is, "Don't let winners turn into losers."
One Element of Our Condor was maintained as shown above. This particular trade is dead center and has some additional profit potential.
With Condor setup we rely on Person Pivots and the Recession Channel to establish the Goal. An Iron Condor is set up to reflect our expectations of direction and degree using these indicators. The Recession Channel is actually a Bell Curve set to a linear scale. There is a 68% Probability that the price will finish within the limits of the channel.
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